Cannabis in California
Cannabis in California is illegal under US federal law, yet legally sanctioned for medical use since 1996, and for recreational use since late 2016. The state of California has been at the forefront of efforts to liberalize cannabis laws in the United States, beginning in 1972 with the nation's first ballot initiative attempting to legalize cannabis. Although it was unsuccessful, California would later become the first state to legalize medical cannabis through the Compassionate Use Act of 1996, which passed with 56% voter approval. In November 2016, California voters approved the Adult Use of Marijuana Act with 57% of the vote, which legalized the recreational use of cannabis.
As a result of recreational legalization, local governments may not prohibit adults from growing, using, or transporting marijuana for personal use. Commercial activities can be regulated or prohibited by local governments although deliveries cannot be prohibited. Following recreational legalization, existing growers and suppliers of medical cannabis were required to register, comply with regulations, and apply for permits. Over half of the nonprofit dispensaries legally providing medical marijuana closed. Local agencies have been slow to approve retail stores selling cannabis for recreational purposes with most cities and counties banning retail with a wait and see approach. Many existing growers have been slow to apply for permits as it has been estimated that 60 percent or more of all cannabis consumed in the United States comes from northern California. The export of marijuana to other states remains illegal since the U.S. Drug Enforcement Administration considers it a Schedule I drug.
Reducing illegal activity is considered essential for the success of legal operations who pay the considerable taxes assessed by state and local authorities. Many people do not have nearby retail stores selling cannabis and continue to buy from unlicensed sellers. Illegal growing continues in remote rural areas. Raids and confiscation by law enforcement of illegal retail and grow operations have continued and in some cases stepped up after legalization.
California's main regulatory agencies were initially the Bureau of Cannabis Control, Department of Food and Agriculture, and Department of Public Health. Their responsibilities were merged under the Department of Cannabis Control in 2021.
Current state and local regulation
Companies must be licensed by the local agency to grow, test, or sell cannabis within each jurisdiction. Cities and counties may license none or only some of these activities. Deliveries by state-licensed firms cannot be prohibited by local jurisdictions as of January 2019 per BCC Regulation 5416. A distributor company must work as a middleman between pot producers and retailers.State agencies were consolidated into the California Department of Cannabis Control in July 2021. Formerly the industry was under three different state regulatory agencies. Retailers, distributors and testing labs were regulated by the Bureau of Cannabis Control. Cultivators were under the Department of Food and Agriculture's CalCannabis Cultivation Licensing Division. The Department of Public Health's Manufactured Cannabis Safety Branch dealt with product manufacturers.
Many communities have created zoning regulations to prohibit cannabis stores. This has led some state legislators to introduce bills that would force many local jurisdictions to allow some retail establishments, especially if a majority in the area voted in favor of legalizing cannabis for recreational purposes. Local governments have been critical of the proposal and were joined by a May 2019 editorial in the Los Angeles Times that was critical of this type of legislation. State legislators argue that the lack of access to legal establishments is one reason the illegal sales continue.
California prohibits the export of marijuana to other states since with the U.S. Drug Enforcement Administration considers it a Schedule I drug. California grows up to five times more than its residents consume by some accounts. Others have estimated that 80% of the crop is shipped out of state. Exported cannabis not only escapes taxation or regulation by California but users in other states will pay a much higher price. The Federal Bureau of Investigation has investigated officials in several cities and counties.
Unlicensed sales were not reduced as fast as many expected. The growth of the legal market has been inhibited since the majority of cities and counties have not allowed the retail sale of cannabis. Due to the continued operation of much illegal activity, heavy taxation is an important issue for licensed operators. They are concerned about the perceived lack of sufficient enforcement against illegal activities. The legal market includes the cost of mandatory testing. Transitioning from a provisional, temporary license to a permanent license has also been difficult. As of April 2020, about 82% of the cannabis licenses were still provisional. Authorities warn that the illegal market may contain pesticide or other chemical residues and mold. Other products sold illegally that have not been tested include edible products and vaping pens.
Possession
Local governments may not prohibit adults from growing, using or transporting marijuana for personal use. An appeals court ruled that inmates who possess small amounts of marijuana in prison are not guilty of a felony crime. Attorney General Xavier Becerra's office had argued that possessing small amounts of marijuana is legally banned in prison which can result in significantly increasing a prisoner's sentence.Cultivation
Cannabis is estimated to be the largest cash crop in California with a value of more than $11 billion.Humboldt, Mendocino, and Trinity counties have long been known as Northern California's Emerald Triangle as it is estimated that 60 percent or more of all cannabis consumed in the United States is grown there. Registering and applying for permits has not been an easy decision for many long time growers in these three counties.
In Santa Barbara County, cannabis growing has taken over greenhouses that formerly grew flowers. In the first four months of legalization, the county had almost 800 permits issued for cultivators, the most of any county in the state.
Calaveras County registered more than seven hundred cultivators after county voters approved a tax in 2016.
Trespass grows
Unlicensed growing continues in remote rural areas and has expanded according to law enforcement reports. Raids and confiscation of illegal grow operations by law enforcement has continued and in some cases stepped up after legalization. Authorities are constantly dealing with illegal cultivation in remote protected areas such as state parks and national forests. Illegal grows are partially responsible for record levels of water thefts during the drought that began in 2020.Pests and diseases
A large number of insect pests are significant, along with some mammals: Mice, Rattus rattus, Neotoma rat spp., Thomomys gopher spp., black-tailed deer, and black bears. Powdery mildew Sphaerotheca macularis and various Pythium root rots are important diseases in this crop. The Department of Pesticide Regulation provides legal guidance and treatment recommendations for all of these.On-site consumption
In July 2019, West Hollywood approved a cannabis consumption license for Lowell Herb Co, "the first of its kind in the nation". Lowell Farms: A Cannabis Cafe opened in September 2019 with a menu of cannabis for consumption, THC-infused drinks and meals for cannabis-enhanced sense of taste and smell. It includes the expertise of cannabis sommeliers, known as "budtenders" on site. It has since been rebranded as the "Original Cannabis Cafe", separating itself from the Lowell Farms corporate brand. A retail establishment Seaweed On Ocean, was licensed in Lompoc for on site consumption in July 2018 and opened December 2019, claims to be the first between Los Angeles and San Francisco.Retail and delivery
Stores selling cannabis for recreational purposes have been banned from 80% of the 482 municipalities in California. In September 2019, 873 cannabis sellers had been licensed by the state while the United Cannabis Business Assn. conducted an audit that estimated there are approximately 2,835 unlicensed dispensaries and delivery services based on advertising. Legal retailers say the illegal market is larger than the legal market due to the high costs they pay in start-up permit costs and on-going taxes. They complain about the lack of effective enforcement against unlicensed shops.Prior to 2018, about 2,000 nonprofit dispensaries legally provided medical marijuana. Legalization introduced regulations that increased the cost of operation and more than 65% of dispensaries shut their doors. Recreational marijuana shops began to open in January 2018, with many districts beginning recreational sales on the first or fifth of January 2018. In January, 2018, Los Angeles had no licensed retailers; the closest cities with licensed retail sales were Santa Ana on January 1 and West Hollywood on January 2., 187 dispensaries had temporary city approval in Los Angeles. Los Angeles adopted an ordinance in 2018 to restrict some storefront and billboard advertising after research showed that young adults who lived near dispensaries that had storefront signage used marijuana more frequently than their peers and have more positive views about the drug.
Many dispensaries and delivery companies continued to operate under the stay-at-home order during the COVID-19 pandemic. With an executive order on March 22, Governor Gavin Newsom declared cannabis one of the enterprises to be considered an essential business.